The present invention relates in general to the distribution and redemption of electronic coupons. In particular, the present invention relates to an electronic coupon distributed to mobile device of a consumer where the redemption value of the coupon may be applied to an account held by the consumer at a financial institution.
Currently, merchants and/or manufacturers may attempt to attract consumers by offering various discounts. Often, the discount may apply to a particular product (e.g., $2 off House Brand peas) or for an amount off a consumer's bill at a merchant, such as in the form of a fixed dollar discount (e.g., $5 off a purchase of $50 or more at BigStore) or a percentage (e.g., 15% off any purchase at BigStore).
Such discounts may appear in multiple forms. For example, a merchant may offer a consumer membership in a loyalty program. Such a program may involve a consumer maintaining a loyalty account, often with the loyalty account number stored on a key fob or transaction card containing a machine-readable storage medium, such as a barcode or magnetic stripe. Before payment, or at the same time, the consumer may be required to present this loyalty account number to the merchant in order to receive various discounts.
Alternatively, a merchant may offer a discount in the form of a printed coupon. Such printed coupons may be distributed to the public and/or a particular consumer base through numerous avenues, such as advertisements in newspapers, magazines, the Internet, direct mailings, etc. To receive the discount, at the time of purchase, a consumer may be required to present the coupon to the merchant. An agent of the merchant, such as a checkout clerk, may scan or read a code appearing on the coupon and apply the discount to the consumer's purchase.
These methods of distributing discounts to consumers may have considerable drawbacks. A loyalty program requiring a consumer to have a loyalty account number may be cumbersome. A consumer may be required to present his loyalty account number separate from her form of payment. This may result in the checkout process being slowed. It may also require a substantial investment from the merchant: the merchant may need to purchase and maintain hardware and software capable of performing tasks such as receiving account loyalty information, processing it, determining which discounts apply to each consumer, and storing consumer data.
A printed coupon-based system may also have drawbacks. The consumer may be required to obtain and carry a the printed coupon to the merchant, creating the possibility of a lost or misplaced coupon. The checkout process may be lengthened by the merchant's clerk attempting to determine whether the coupon is valid, properly record the coupon, and apply the discount to the consumer's purchase. The use of printed coupons may also require the investment of money by the merchant. For example, the merchant may need to purchase hardware and software to read machine-readable codes on the coupons, and/or record what coupons have been redeemed.
The invention addresses these and other problems.